Guides
How to calculate loyalty programme ROI
If you cannot explain the return on one sheet, you do not know whether the programme makes or loses money.
8 min readVuelvis
Loyalty ROI = (margin from attributable extra visits or ticket − reward cost − software − ops cost) / (rewards + software + ops). If you do not separate “they would have come anyway”, you fool yourself.
Minimum numbers to track
- Active members at 30 and 90 days
- Visits per active member vs a non-member baseline
- Redemptions and true cost of free goods/services
- Software: $45/month (or your plan)
- Staff minutes on join + stamp each week
A worked example (illustrative)
100 active members. You estimated 3 visits/month without the programme; you now measure 3.4. Those 40 extra visits × £3 margin = £120. Rewards cost £35. Software is $45. If software + rewards stay under £120 and till time is sane, the month is positive. Plug in your numbers—the method matters more than the sample.
Mistakes that fake ROI
- 1Celebrating sign-ups without second visits
- 2Costing rewards at retail price
- 3Changing rules weekly (no baseline)
- 4Ignoring off-policy “courtesy” stamps
Frequently asked questions
- What is a “good” ROI?
- For local retail, covering software and rewards with clearly incremental visits in the month is enough to continue. Aim for positive net contribution, not a startup vanity ratio.
- Should I include staff time?
- Yes—at least an estimate: seconds per scan × volume. If the flow exceeds ~15s at peak, operational ROI collapses even if marketing works.
- What fixed cost do I use with Vuelvis?
- Your market plan (from $45/month) plus the true cost of redeemed rewards. Use the 30-day trial before scaling promotion.
